California Regional Variations & Practices

Question 1

Part of the title searcher’s job is to eliminate all parties who are named as a result of the search but who are not the actual party to the transaction in order to

(a) The party to the transaction doesn’t have a lien belonging to someone else and which is made a condition of the escrow
(b) To identify any lien, judgment, or some other matter belonging to the party that could affect title
(c) Both a and b
(d) Neither a nor b

Answer 1

(c) Both a and b

Question 2

Question: Escrow procedure is closely related to the title insurance process

(a) In Northern California
(b) In Southern California
(c) Throughout California
(d) None of the above

Answer 2

(a) In Northern California

Question 3

The title report will reveal

(a) Dominant tenement which are those that benefit another’s property
(b) Servient tenements which are those that benefit the subject property
(c) Both a and b
(d) Neither a nor b

Answer 3

(d) Neither a nor b

For example, the report might reveal that the property has a fee estate coupled with an easement appurtenant to the fee title interest. The title search will reveal both dominant tenements, which benefit the subject property, and servient tenements, which benefit another’s property and which may affect the use of a portion of the subject property.

Question 4

The right to use the land of another for a particular use, such as utilities, ingress, and egress are

(a) Easements
(b) Exceptions
(c) Reversions
(d) CC&Rs

Answer 4

(a) Easements

Question 5

If existing liens are to be paid off, the actual payoff amounts are requested of the lienholder in the form of a

(a) Beneficiary statement
(b) A demand
(c) Alienation
(d) Acceleration

Answer 5

(b) A demand

Question 6

Instead of requesting payoff information about the seller’s loan from the lender, a seller may provide escrow with a statement representing the current status of the loan called

(a) A seller’s demand
(b) A seller’s beneficiary statement
(c) A seller’s offset statement
(d) A seller’s assumption statement

Answer 6

(c) A seller’s offset statement

Question 7

In Northern California, the drawing of escrow instructions

(a) Takes place at the beginning of the process
(b) Are prepared in parts, one for the seller and one for the buyer, and to be signed separately
(c) Both a and b
(d) Neither a nor b

Answer 7

(b) Are prepared in parts, one for the seller and one for the buyer, and to be signed separately

Question 8

Southern California escrow processes

(a) Follow most of the steps as those in Northern California
(b) Occur in a different and earlier order than those in Northern California
(c) Both a and b
(d) Neither a nor b

Answer 8

(c) Both a and b

Question 9

Southern California escrow practice involves escrow instructions that are

(a) Bilaterally prepared
(b) More elaborate and all-inclusive
(c) Usually signed in parts, one by the buyer and one by the seller
(d) All the above

Answer 9

(d) All the above

Question 10

The buyer’s lender receives a copy of the escrow instructions and preliminary title report

(a) From the seller
(b) From the buyer
(c) From the title officer
(d) From the escrow officer

Answer 10

(d) From the escrow officer

Question 11

California good funds law specifies funds deposited into escrow through a wire transfer may be disbursed

(a) The same day as received
(b) The next business day after receipt
(c) Three business days after receipt
(d) Five business days after receipt

Answer 11

(a) The same day as received

Question 12

Payment for recording fees can be made by

(a) Cash or cashier’s check
(b) Personal check
(c) Money order
(d) All the above

Answer 12

(d) All the above

Question 13

The preliminary title report
(a) reveals the extent of coverage protection and any exclusion to it.

(b) is essentially a report of conditions discovered that affect title sale.
(c) may often contain items that require resolution or elimination before the title policy will be issued.
(d) all of these.

Answer 13

(d) all of these.

Question 14

Information that may be necessary for the title officer to issue a preliminary title report might include

(a) a complete legal description of the property.
(b) current parties on title.
(c) prospective parties on title.
(d) all of these.

Answer 14

(d) all of these.

Question 15

he title report will show easements, including

(a) dominant tenements.
(b) dormant tenements.
(c) servient tenements.
(d) both a and c.

Answer 15

(d) both a and c.

Question 16

Covenants, conditions and restrictions (CC&Rs) can apply to

(a) only condominiums.
(b) condominiums and planned unit developments.
(c) all real property.
(d) only new construction.

Answer 16

(c) all real property.

Question 17

If the buyer is going to assume the seller’s existing loan, the escrow officer will order

(a) a demand statement for the lender.
(b) a beneficiary statement from the lender.
(c) an offset statement from the lender.
(d) a beneficiary statement from the seller.

Answer 17

(b) a beneficiary statement from the lender.

Question 18

A clause in the lender’s note that allows the lender to call the loan due and payable in the event of a transfer of a title is alienation or

(a) acceleration.
(b) accomodation.
(c) amortization.
(d) assumption.

Answer 18

(a) acceleration.

Question 19

Southern California escrow practices usually focus on

(a) the loan aspect of the transaction except for an all-cash transaction.
(b) the title aspect of the transaction.
(c) the inspection aspect of the transaction.
(d) none of these.

Answer 19

(a) the loan aspect of the transaction except for an all-cash transaction.

Question 20

Southern California purchase escrow instructions are

(a) unilateral.
(b) bilateral.
(c) individual.
(d) both b and c.

Answer 20

(b) bilateral.

Question 21

If only one party has signed the bilateral escrow instructions, escrow

(a) is not considered open.
(b) is considered open.
(c) must be cancelled.
(d) is considered cancelled.

Answer 21

(a) is not considered open.

Question 22

California’s good funds law provides that

(a) wire transfer funds are good the same day received.
Quiz Question

(b) cashier’s check funds are good the next business day.
(c) both a and b.
(d) neither a nor b.

Answer 22

(c) both a and b.